Question

A business has beginning capital of $56,000. The owner makes nocontribution but does withdraw $15,000. The net income for the reportingperiod is $9,000. What is the ending balance?A. $24,000B. $80,000O C. $41,000D. $50,000

Answer 1

Step 1

Given;

`\begin{gathered} \text{The beginning capital = \$56000} \\ \text{The owner withdraws \$15000} \\ \text{The net income of the reporting period= \$9000} \end{gathered}`

Required; To find the ending balance

Step 2

Find the ending balance

`\begin{gathered} \text{Ending balance= Beginning capital -what the owner withdraws +} \\ \text{ net income for the reporting period} \\ \text{Ending balance=56000-15000+9000} \\ \text{End balance=\$}50000 \end{gathered}`

Hence, the ending balance will be = $50000

The answer is option D